Why a Top Analyst Thinks Bitcoin Remains Bearish Despite $1,000 Jump

Since trading as low as $6,400 this week, Bitcoin (BTC) has seen a strong price recovery, surging as high as $7,300 late last week as bulls managed to defend key levels. In other words, the leading cryptocurrency jumped by nearly $1,000 from the multi-month bottom, making some believe that bulls are back.A top analyst, however, has asserted that Bitcoin remains in a clear downtrend, meaning that this latest jump is just a relief rally, not a full-fledged reversal.Related Reading: Lightning Works: Bitcoin Podcaster Finds Restaurant Shunning Banks for BTCBitcoin Still Caught in DowntrendJosh Rager, a popular cryptocurrency trader, recently noted that it is far too soon to be bullish after the $1,000 move earlier this week. Rager looked to the fact that BTC is still stuck below a trend line formed after October’s infamous China pump, adding that unless it breaks this level and the $8,000 resistance, a reversal rally will end abruptly.$BTCFeeling bullish after that $1k move? Zoom out and you’ll see price is still very much in a downtrendNeeds to break/hold above $7950/$8k for any talk of a potential reversalBreak previous low and likely head under $6k where $5,300 area is a promising place for buyers pic.twitter.com/Xhyekb5Yq8— Josh Rager 📈 (@Josh_Rager) December 21, 2019Rager’s sentiment that Bitcoin remains in a downtrend has been corroborated by other top traders.Disk jockey-turned-crypto trader Scott “The Wolf of All Streets” Melker recently reminded his followers to “tread lightly,” asserting that investors shouldn’t get too caught up in the fact that Bitcoin bounced 10% from the local low.Melker noted that two bearish divergences have formed between the BTC’s price and the Relative Strength Index (RSI), which largely show that the latest price recovery was “more like relief than reversal,” implying that a continuation to the downside has a decent opportunity of playing out.

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